HUMAN RESOURCE MANAGEMENT
SESSION - MODULE 1
Dr. Nisha R - Assistant Professor
HR & OB Division - VIT Business School
VELLORE INSTITUTE OF TECHNOLOGY, CHENNAI
Modules Topics
Introduction to Human Resource
Management & Creating the Human
Resource base –
Concept, Nature and Scope of Human
1 Resource Management
Introduction to Human Resource Management & Creating the Human Resource
base
• Course objectives:
• Is to sensitize students to the various facets of managing people and to
create an understanding of the various policies and practices of human
resource management.
• Course outcome:
• At the end of the course the student is expected to have acquired :
• Acquire sound knowledge of aspects of Human Resource Management in
an organization
• Understand the process of Acquisition, Recruitment and Selection
• Design Training and Development process
• Analyze methods of performance appraisal and compensation
BRAIN STORM
• YOUR VIEW POINT ON – WHAT IS HUMAN RESOURCE MANAGEMENT
Introduction to Human Resource Management & Creating the Human Resource
base
• EVOLUTION OF HRM
•
• The term "human resource management" has been commonly used for about the last ten to fifteen years. Prior to that,
the field was generally known as "personnel administration."
• Personnel administration, which emerged as a clearly defined field by the 1920s (at least in the US), was largely
concerned the technical aspects of hiring, evaluating, training, and compensating employees and was very much of
"staff" function in most organizations
• It's believed that the first personnel management department began at the National Cash Register Co. in the early 1900s,
according to an HR Magazine article. After several strikes and employee lockouts, NCR leader John H. Patterson
organized a personnel department to handle grievances, discharges, and safety, as well as training for supervisors on
new laws and practices
• Industrial welfare was the first form of human resource management (HRM).
• In 1833 the factories act stated that there should be male factory inspectors. In 1878 legislation was passed to regulate
the hours of work for children and women by having a 60 hour week. During this time trade unions started to be formed.
• In 1868 the 1st trade union conference was held. This was the start of collective bargaining. In 1913 the number of
industrial welfare workers had grown so a conference organized by Seebohm Rowntree was held. The welfare workers
association was formed later changed to Chartered Institute of Personnel and Development.
Introduction to Human Resource Management & Creating the Human Resource base
During 1st world war
It all started when Mary Wood was asked to start engaging girls during the 1st world war. In the 1st world war personnel
development increased due to government initiatives to encourage the best use of people. In 1916 it became compulsory to
have a welfare worker in explosive factories and was encouraged in munitions factories. A lot of work was done in this field by
the army forces. The armed forces focused on how to test abilities and IQ along with other research in human factors at work.
In 1921 the national institute of psychologists established and published results of studies on selection tests, interviewing
techniques and training methods.
• Recruitment and Selection
• During the 2nd world war
• The focus was on recruitment and selection and later on training; improving morale and motivation; discipline;
health and safety; joint consultation and wage policies. This meant that a personnel department had to be established with
trained staff.
• Acquisition of other Personnel Activities
Introduction to Human Resource Management & Creating the Human Resource base
• Consultation between management and the workforce spread during the war.
• This meant that personnel departments became responsible for its organization and administration. Health and
safety and the need for specialists became the focus. The need for specialists to deal with industrial relations was
recognized so that the personnel manager became as spokesman for the organization when discussions where held
with trade unions/shop stewards.
Industrial Relations
• In the 1970's industrial relations was very important. The heated climate during this period reinforced the
importance of a specialist role in industrial relations negotiation. The personnel manager had the authority to
negotiate deals about pay and other collective issues.
Legislation
• In the 1970's employment legislation increased and the personnel function took the role of the specialist advisor
ensuring that managers do not violate the law and that cases did not end up in industrial tribunal
Introduction to Human Resource Management & Creating the Human Resource base
• In the 1990's
• a major trend emerged where employers were seeking increasing flexible
arrangements in the hours worked by employees due to an increase in number
of part-time and temporary contracts and the invention of distance working.
• The workforce and patterns of work are becoming diverse in which traditional
recruitment practices are useless.
• In the year 2000, growth in the use of internet meant a move to a 24/7 society.
This created new jobs in e-commerce while jobs were lost in traditional areas like
shops. This meant an increased potential for employees to work from home.
Organizations need to think strategically about the issues these developments
raise. HRM managers role will change as changes occur.
• Flexibility and Diversity
https://www.youtube.com/watch?v=RpHX03q_3UI
Human Resource Management: Nature
• Human ResourceManagement is a process of bringing people and organizations together so that the goals
of each are met. The various features of HRM include:
• It is pervasive in nature as it is present in all enterprises.
• Its focus is on results rather than on rules.
• It tries to help employees develop their potential fully.
• It encourages employees to give their best to the organization.
• It is all about people at work, both as individuals and groups.
• It tries to put people on assigned jobs in order to produce good results.
• It helps an organization meet its goals in the future by providing for competent and well-motivated
employees.
• It tries to build and maintain cordial relations between people working at various levels in the organization.
• It is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.
Human Resource Management: Nature
Human Resource Management: Nature
• Pervasive Function: HRM is practised at all levels of management and applies to all kinds of
organisations, even to non-profit organisations.
• Result Oriented: It aims at achieving organisational objectives through the optimum
utilisation of human resources.
• Tactful Approach: HRM deals with the people who are distinct from one another; thus the
manager needs to apply diverse strategies and tactics at different point of time and in
different situations.
• People-Centric: Human resource management is concerned majorly with the employees
working in an organisation.
• Integrative Action: It focusses on maintaining cordial relations among the employees at
different levels and also addresses employee grievances.
• Continuous Process: HRM is an ongoing process of procurement, development and
redirection of personnel towards the organisational goals. It cannot be completed in a day, a
week or a month.
OBJECTIVES OF HRM
• Societal Objectives: HRM is essential to comply with the laws of the society such as labour law or reservation
system. It is obligatory for any organisation to fulfil its ethical and social responsibilities which can be done only
through HRM.
• Organisational Objectives: In an organisation, human resource management is not an independent unit, but it is
a department which aims at facilitating the other departments of the organisation to function smoothly.
• Functional Objectives: HRM ensures that every department is supplemented with the employees possessing the
required set of skills and talent, at the desired cost. It also provides for the optimum utilisation of the human
capital.
• Personal Objectives: To ensure employee’s long-term association with the organisation and to enhance
employee’s commitment and contribution towards the organisation, HRM helps the employees to reach their
personal goals.
Importance of Human Resource Management (HRM)
• Over the years, human resource management (HRM) has gained importance in the
business sector, as well as non-profit organisations. Human capital is equally important
as the financial capital is to an organisation, since ‘people perform a task’
Importance of Human Resource Management (HRM)
• Fulfil the Human Resource Requirement:
• Human resource management fills in the gap between the vacancies in the organisation and the suitable candidates
for such positions.
• Employee Retention: HRM not only functions to acquire the manpower but also concentrates on the maintenance
and retention of the human capital.
• Enhance the Quality of Work Life: It focusses on the continuous enhancement of the job facilities, hence improving
the quality of employee’s work life.
• Redressing Grievance and Conflict: HRM addresses the problems among employees or with the management since
it is essential for any organisation to resolve its internal conflicts and grievances to ensure a sound and co-operative
work environment.
• Achieving Organizational Goals: To reach the set objectives and targets on time, it is necessary to direct the
employee’s efforts towards the organisational goals. All this is possible only through the practice of human resource
management.
• Long-term Existence in the Market: As we all know that employees are the inevitable part of any organisation,
therefore to survive in the competition, it is imperative that the organisation brings HRM into functioning .
Importance of Human Resource Management (HRM)
• Developing Team Spirit and Feeling of Belongingness: It brings together the different employees as a team to
accomplish the goals of the organisation. HRM also make the employees feel valuable to the organisation.
• Employee Satisfaction and Welfare: HRM works for the welfare, safety and security of the organisation. It is majorly
concerned about the level of satisfaction derived by an employee from his job.
SCOPE OF HRM
• HRM is concerned with the 'people' dimensions of the organisations.
• The organizational objectives can be best attained by acquiring human resource, develop their skills, motivate them
for high performance and ensure that they continue to maintain their commitment and loyalty towards the high
performance.
• The scope of HRM is, indeed, very vast and wide. It includes all activities starting from manpower planning till
employee leaves the organisation. Accordingly, the scope of HRM consists of acquisition, development,
maintenance/retention, and control of human resources in the organisation
• The scope of HRM is very wide: Personnel aspect-This is concerned with manpower planning, recruitment, selection,
placement, transfer, promotion, training and development, talent management layoff and retrenchment,
remuneration, incentives, productivity etc.
SCOPE OF HRM
• Human resources planning :- Human resource planning or Human Resource Planning refers to a process by
which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of
staff and to deal with this excess or shortage.
• Job analysis design :- Another important area of Human Resource Management is job analysis. Job analysis
gives a detailed explanation about each and every job in the company.
• Recruitment and selection :- Based on information collected from job analysis the company prepares
advertisements and publishes them in the newspapers. This is recruitment. A number of applications are
received after the advertisement is published, interviews are conducted and the right employee is selected
thus recruitment and selection are yet another important area of Human Resource Management.
• Orientation and induction :- Once the employees have been selected an induction or orientation program is
conducted.
• This is another important area of Human Resource Management. The employees are informed about the
background of the company, explain about the organizational culture and values and work ethics and introduce
to the other employees.
• Training and development :- Every employee goes under training program which helps him to put up a better
performance on the job. Training program is also conducted for existing staff that have a lot of experience. This
is called refresher training. Training and development is one area where the company spends a huge amount.
SCOPE OF HRM
• Performance appraisal :- Once the employee has put in around 1 year of service, performance appraisal is conducted
that is the Human Resource department checks the performance of the employee.
• Based on these appraisal future promotions, incentives, increments in salary are decided.
• Compensation planning and remuneration :-
• There are various rules regarding compensation and other benefits. It is the job of the Human Resource department to
look into remuneration and compensation planning.
• Motivation, welfare, health and safety :- Motivation becomes important to sustain the number of employees in the
company.
• It is the job of the Human Resource department to look into the different methods of motivation. Apart from this certain
health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR
department.
• Industrial relations :- Another important area of Human Resource Management is maintaining co-ordinal relations with
the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the
company.
Challenges of Human Resource Management (HRM)
• The human resource managers go through many
obstacles in the management and development of the
human resource, all due to the emergence of new
technology and the changing of political and socio-
economic conditions.
Challenges of Human Resource Management (HRM)
• Growing Employee Expectations: With the learning of new skills and better qualification,
the employee’s expectations keep on increasing, and at times it is difficult for managers to
meet such high expectations.
• Growing Size of Workforce: With the growth of any organisation, the workload increases
and the number of employees also multiply. This leads to the excessive workload on the
human resource manager and the HR team.
• The emergence of New Technology: The technological advancement has though
simplified the business process but has emerged as a challenge in front of the managers to
either provide training to their old staff or seek for the new talent.
• Internal Politics: Sometimes, the human resource manager has to face situations where
employees either mislead or influence other employees to restrict them from performing
their task if the problem pertains the organisation may experience employee turnover or
resignations.
Challenges of HR And Its Shift Post COVID-19 Pandemic
• https://blog.vantagecircle.com/challenges-of-hr/
Challenges of Human Resource Management (HRM)
• Human Psychology: HRM somehow deals with human psychology
and its impact on the business which is a complex system and unlike
the problems related to other physical resources and assets, have no
particular solution.
• Changes in Law and Regulations: To safeguards the interest of
employees, government bring in specific rules and regulations which
have to be followed by organisations. At times, it is difficult for the
HR manager to adhere to such laws.
• Maintenance of Human Relations: A human resource manager not
only acts as a mediator between the management and the
employees but also tries to maintain a cordial relationship among the
two, which requires a lot of tactics and diplomacy.
CONCLUSION
• We humans have a nature of never being content with what we have.
They always aspire for more. Also, the problems related to human
resource have different solutions each time, this created the need for
human resource management.
• HRM is a complex process; therefore the human resource managers
require a lot of patience, careful approach and a diplomatic attitude
to handle the human capital of an organisation effectively.
